In complementing the consumer protection efforts of the Central Bank of Nigeria CBN, the Nigeria Depositor Insurance Corporation NDIC said it has enhanced public awareness on the benefits and limitations of the deposit insurance system and financial literacy, to reduce rate at which small depositors are being defrauded, thereby enhancing confidence in banking system.
The Managing Director/Chief Executive Officer of the Corporation, Bello Hassan made this known at the 20th Edition of the Workshop for Business Editors and Finance Correspondents Association of Nigeria FICAN members in Imo State on Wednesday.
He added that the Corporation has invigorated liquidation activities and greatly increased debt recovery rate leading to declaration of 100 per cent liquidation dividends to depositors of over 20 deposit money banks in liquidation.
The MD also said the Corporation also improved its systems, processes and procedures to promote transparency and accountability in its operations, amongst other humble achievements.
Bello explained that the Deposit Insurance System, as a critical component of the financial safety net, has continued to play critical roles in complementing the drive of the CBN, in promoting stability in the financial system which becomes more significant for the NDIC with a broad mandate of Risk Minimizer.
According to him, “As expected, the Deposit Insurer has always been impacted by the challenges that confront the financial system at various times. Though some of challenges are universal, others are however, unique.
“The desire to strengthen our banks through prudential thresholds and other regulatory instruments, calls for collaboration with all relevant stakeholders in the Nigerian financial system”.
He recalled the maiden FICAN Workshop outing at Ibadan on 20th October 2021, where he underscored the determination of the current Management of the NDIC to work harmoniously with all stakeholders, particularly the fourth estate of the realm, towards a more effective discharge of the Corporation’s mandate.
He also laid out the key focus of the Management Team under his humble leadership: to scale up the deposit insurance framework; provide timely support to insured institutions as and when required; ensure faster and orderly resolutions of liquidated insured institutions; as well as assist the monetary authority in promoting the stability of the banking system.
Bello noted that, in order to deliver on this, which is in harmony with the vision of the Corporation: “To be one of the best deposit insurers in the world”, adding that the NDIC launched the 2021 –2025 Strategic Plan, which was formulated in consideration of current realities and trends, as well as the desire to differentiate the Corporation by providing excellent and efficient services to our stakeholders across board.
The MD stated that NDIC’s commitment in this regard has not gone without yielding the desired results. “We have introduced the Single Customer View (SCV) framework that has enhanced speedy payment of insured sums to depositors of closed banks.
“We have enhanced collaboration with the bar and the bench, leading to speedy dispensation of justice and more informed judgements on failed banks cases; we have equally put in place policy and framework on Alternative Dispute Resolution for out-of- court settlement, which had enabled us to resolve some hitherto protracted failed bank
litigations.
“We have reviewed the Framework for Differential Premium Assessment System (DPAS) to make it more risk sensitive and account for significant developments that have taken place in the Nigerian banking system since its adoption in 2008; and have established special desk at Economic and Financial Crimes Commission (EFCC) which has energized investigation and prosecution of parties responsible for failure of banks.
“The Corporation has also reached an advanced stage in the review of the maximum deposit insurance coverage, to account for the impact of macroeconomic developments, since its last review. It is our belief that new coverage level once approved will go a long way in reinforcing depositors’ confidence on the NDIC’s deposit guarantee scheme”, he said.
Bello welcomed the development of the Corporation that identified for various special recognitions and awards amongst the comity of Ministries, Departments and Agencies (MDAs) by credible bodies and institutions, some of which he highlighted as follows:
i.Year 2021 and 2023 Overall Best Public Institution among 360 MDAs in the Independent Corrupt Practices and Other Related Offences Commission’s(ICPC) Ethics and Integrity Compliance Scorecard (EICS).
ii. First Position in the 2021 Transparency & Integrity Index, a public sector assessment by the Center for Fiscal Transparency & Integrity Watch (CeFTIW), non- governmental and non-partisan organization established in 2016 and supported by the MacArthur Foundation with the aim of promoting accountability and transparency within the public sector among others.
He said these awards and recognitions bear eloquent testimonies to the irrevocable commitment of the current Management Team of the NDIC and the staff, to bringing about a paradigm shift in the discharge of the Corporation’s mandate.